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Strategies for reducing consumers’ risk aversion in Internet shopping

Soo Jiuan Tan (Assistant Professor, Marketing Department, Faculty of Business Administration, National University of Singapore, Singapore)

Journal of Consumer Marketing

ISSN: 0736-3761

Article publication date: 1 April 1999



Using experimental design and conjoint analysis, this paper studies the risk perception of Singaporean consumers on Internet shopping, and tests the effectiveness of several risk‐reducing strategies that Internet marketers could use in promoting online shopping among consumers. The results show that Singaporean consumers with a higher degree of risk aversion than others tend to perceive Internet shopping to be a risky activity. However, Internet marketers could rely on using reference group appeal as the most preferred risk relievers for this group of consumers, particularly by getting expert users to endorse the products involved. In addition, the marketer’s reputation, the brand’s image, and specific warranty strategies are also effective risk relievers for the potential Internet shoppers.



Jiuan Tan, S. (1999), "Strategies for reducing consumers’ risk aversion in Internet shopping", Journal of Consumer Marketing, Vol. 16 No. 2, pp. 163-180.




Copyright © 1999, MCB UP Limited

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